BUILDING USE v.s. BUILDING OCCUPANCY

A L.K.Q.S.S. COMPLIANCE & REGULATORY RULING

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BUILDING USE V.S. BUILDING OCCUPANCY

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Is the Building Use and the Building Occupancy, one of the same? …….. possible. Are they different when evaluating a building? ……. Yes.

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IN THE BEGINNING

In 1930 Marshall & Swift, the Building People, was founded to assist appraisers determine the correct valuation of real property. One of their first publications came in the form of the Marshall Valuation Service that supplied general information and costs in the form of a property valuation service to the property and casualty side of the insurance industry. This publication assisted in identifying under-insured properties, gave insurance coverage amounts and analyzed claims before branching out into other forms such as real estate market value, assessment mill rate assistance, and more.

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One important factor is that it gave a formula and approach to determining value. One of those steps was the Use & Occupancy segment. The term was soon shortened to just the word “Occupancy” but that did not mean that in the process, they forgot about the use. They simple stopped referring to it. The “Use” remained in the formula.

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Building Use describes the purpose and design of the building. Simply put “What is the building design?”

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Building Occupancy describes the inhabitant or activity conducted within the building. Or, just ask, “What is the activity within the building?”

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In the beginning, there were five (5) major uses of buildings. They were Agriculture, Commercial, Industrial, Institutional, and Residential.

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MILITARY GROUP

Along came World War II and a Military Group was added to the original group of five. Within this group there are found the following Occupancies:

·??????Multipurpose Administration Office

·??????Data Processing Administration Office

·??????Aircraft Operations (without tower)

·??????Aircraft Operations (with tower)

·??????General Instruction Building

·??????High Tech Instruction Buildings

·??????Barracks

·??????Bowling Alleys

·??????Chapel Centre

·??????Commissary

·??????Family Housing (U.S.)

·??????Family Housing (outside U.S.)

·??????Child Development Centre

·??????Education Centre

·??????Youth Centre

·??????Family Service Centre

·??????Fire and Rescue Station

·??????Fire Station (community)

·??????General Maintenance Hanger

·??????High Bay Maintenance Hanger

·??????Library

·??????Main Exchange (with mail services)

·??????Station Hospital

·??????Regional Medical Centre

·??????Medical Clinic

·??????Dental Clinic

·??????Ambulatory Clinic

·??????Dining Facility

·??????General Purpose Operations Building

·??????Squadron Building

·??????Physical Training Centre

·??????Recreation Centre

·??????Satellite Communications Centre

·??????Service Club

·??????Elementary School

·??????Junior High School

·??????High School

·??????Vehicle Maintenance Shop (wheeled)

·??????Vehicle Maintenance Shop (tracked)

·??????Aircraft Avionics Shop

·??????Installation & Maintenance Shop

·??????Parachute and Dinghy Shop

·??????Aircraft Machine Shop

·??????Cold Storage Warehouse

·??????Cold Storage & Processing Warehouse

·??????General Purpose Warehouse (low bay)

·??????General Purpose Warehouse (high bay)

·??????General Purpose Warehouse (heavy – with crane)

·??????Magazine Warehouse

·??????Temporary Lodging Facility

·??????Unaccompanied Officers Quarters

Today most of these occupancies have merged into the occupancy groups that are listed in the following pages. However, it should be noted that these bases can become decommissioned, and these types of buildings may fall back into the civilian categories coming up. Normally these complexes are considered nomad and can be disassembled, transported, and reassembled elsewhere. If this is the case, place the building in its appropriate civilian category and the quality may need to be adjusted as a betterment for valuation purposes. Today, this category is seldom recognized and mentioned in any publication. If it is, it is for reference only.

Today, the number of groups for use has increased to the following:

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FARM USE

·??????Size: 500 - 25,000 square feet

·??????Greenhouse Section Size: 500 – 200,000 square feet

ECONOMY: Outbuildings, Mostly Unfinished

·??????Light Commercial Buildings (includes Commodity Warehouse, Manufacturing, Utility, Arch Rib, Quonset, Equipment, Shop)

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AVERAGE: Some Finished Floors, Interior Build-out, Low-Cost Mechanical

·??????Barns (includes Tobacco [Flue Curing, Air Curing], Fruit Packing, General Purpose, Bank, Haylofts, Special Purpose [1 & 2 Storey],

·??????Houses (includes Poultry Floor Operation {Breeder, Broiler}, Poultry Cage Operation {Enclosed, Screened}

·??????Light Commercial Sheds (Feeder, Loafing, Open Hay, Milk-house, Modified Hog, Hog, Sheep)

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Free Stall, Confinement, Feeder, Calving, Horse, Dairy, Hog [Nursery, Breeding, Gestation, Farrowing, Finishing], Sheep, Turkey)

·??????Miscellaneous Buildings (includes Golf Cart Storage, Golf Starter Booth, Guard Houses, Materials Storage, Bulk Oil, Lumber Storage, Boat Storage, Bag Fertilizer, Bulk Fertilizer, Farm Cold Storage, Potato Storage, Vegetable [Environmental], Controlled Atmosphere, Flat-house Storage, Cotton Gins, Seed Processing Storage, Secure Storage Modular, Prefabricated Storage, Farm Utility, Arch-Rib Farm Utility, Quonset Farm Utility, Grain Storage, Granary, Corn Crib [Spaced Boards, Wire Mesh, Farm Implement [Arch-Rob, Quonset], Equipment Shops [Arch-Rob, Quonset], Arenas, Stables, High-Value Stables, Estate Stables, Milking Parlours, Milk-houses, Dormitories, Grain Elevators, Silos)

·??????Greenhouses (includes Straight Wall, Hoop (Arch-Rib/Quonset), Shade Shelters, Lath Shade Houses) -

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INDUSTRIAL USE

·??????Size: 500 - 500,000 square feet square feet

·??????Economy & Average Sections Size: 500 – 25,000 square feet

ECONOMY: Outbuildings, Mostly Unfinished

·??????Light Commercial Sheds (includes Tool, Equipment, Material Storage, Lumber Storage, Boat Storage, Dehydrator, Feed Handling & Mixing, Secure Storage Modular, Prefabricated Storage, Farm Utility Storage, Farm Implements, Equipment

·??????Shelters (includes Material, Commodity, Corn Crib Bins, Farm Utility Lean-Tos, Farm Commodity Storage, Farm Utility, Arena, Farm Sun, Equestrian Lean-Tos, Individual Livestock, Hunting)

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AVERAGE: Some Finished Floors, Interior Build-out, Low-Cost Mechanical

·??????Light Commercial Buildings (includes Commodity Warehouse, Manufacturing, Utility, Arch Rib, Quonset, Equipment, Shop)

·??????Farm Utility, Arch-Rib Farm Utility, Quonset Farm Utility, Grain Storage, Granary, Corn Crib [Spaced Boards, Wire Mesh, Farm Implement [Arch-Rob, Quonset], Equipment Shops [Arch-Rob, Quonset],

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Warehouses (includes Distribution, Transit, Cold Storage, Creameries, Mega, Storage, Mini, High-Rise Mini)

·??????Garages (includes Repair, Service Garage Sheds, Municipal Service, Mini-Lube, Parking Basements, Parking (Parkade) Structures)

·??????Hangers (includes Maintenance, Storage, T-Hanger)

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VERY GOOD: Fully Finished Build-out, Upgraded Mechanical

·??????Industrial (includes Light Manufacturing, Heavy (Process) Manufacturing, Engineering Research, Laboratories, Computer (Data) Centres, Broadcasting Facilities, Passenger Terminals)

·??????Loft and Industrial Flex (Mall) Buildings

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EXCELLENT: High-cost Buildout, Best finishes. High Partition Density, Best Mechanicals

·??????Automotive Buildings (includes Auto Dealerships, Service C enters, Showrooms,)

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COMMERCIAL USE

·??????Average Section Size: 500 - 25,000 square feet square feet

·??????Good Section Size: 1,000 – 40,000 square feet

·??????Very Good & Excellent Sections Size: 1,000 – 100,000 square feet

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AVERAGE: Some Finished Floors, Interior Build-out, Low-Cost Mechanical

·??????Light Commercial Office Sheds, Relocatable Offices

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Office – Apartments

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VERY GOOD: Fully Finished Build out, Upgraded Mechanical

·??????Office (includes Atrium, Vestibules, Parking Levels)

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EXCELLENT: High-cost Build out, Best finishes. High Partition Density, Best Mechanical

·??????Banks, Mini-Banks

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MEDICAL USE

·??????Size: 1,000 – 100,000 square feet

GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Kennels, Veterinary Hospitals

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VERY GOOD: Fully Finished Build-out, Upgraded Mechanical

·??????Medical Offices, Dental, Clinics

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EXCELLENT: High-cost Build-out, Best finishes. High Partition Density, Best Mechanical

·??????Hospitals, Outpatient (Surgical) Centres, Nursing Homes

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PUBLIC USE

·??????Size: 1,000 – 100,000 square feet

AVERAGE: Some Finished Floors, Interior Build-out, Low-Cost Mechanical

·??????Volunteer Fire Stations

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Staffed Fire Stations

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VERY GOOD: Fully Finished Build out, Upgraded Mechanical

·??????Police Stations, Libraries, Community Service

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EXCELLENT: High-cost Build-out, Best finishes. High Partition Density, Best Mechanical

·??????Government, Detention Centres, Correctional Facilities, Jails

·??????Miscellaneous Buildings (includes Main Post Offices, Processing Facilities, Branch Post Offices)

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RETAIL USE

·??????Size: 500 – 500,000 square feet

AVERAGE: Some Finished Floors, Interior Build-out, Low-Cost Mechanical

·??????Roadside Markets, Warehouse Food Stores

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Warehouse Stores (includes Mall Anchor Stores, Big Box, Department, Discount, , Convenience, Drug Stores, Luxury Boutiques, Barber Shops, Beauty Salons, Laundromats, Laundry & Dry Cleaning, Mega Warehousing)

·??????Neighbourhood Shopping Centre, Mixed Retail with Residential Units, Mixed Retail with Office Units

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VERY GOOD: Fully Finished Build-out, Upgraded Mechanical

·??????Retail Stores (includes Department, Discount, Warehouse, Showroom, Convenience, Drug Stores, Barber Shops, Beauty Salons, Laundromats, Laundry & Dry Cleaning, Mega Warehousing)

·??????Community Shopping Centre

·??????Markets (includes Supermarkets, Florist Shops, Dairy)

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EXCELLENT: High-cost Buildout, Best finishes. High Partition Density, Best Mechanicals

·??????Mall Anchor Stores, Big Box, Luxury Boutiques, Mini-Marts, Winery

·??????Regional SC, Regional Discount SC, Shopping Centres with Concourses

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FOOD SERVICE USE

·??????Size: 500 – 500,000 square feet

AVERAGE: Some Finished Floors, Interior Build-out, Low-Cost Mechanical

·??????Snack Bars, Banquet Halls

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Bars, Taverns, Cocktail Lounges, Pubs, Cafeterias

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VERY GOOD: Fully Finished Build-out, Upgraded Mechanical

·??????Restaurants (table service), Truck Stops

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EXCELLENT: High-cost Build-out, Best finishes. High Partition Density, Best Mechanical

·??????Dining Atrium, Playrooms, Fast Food, Diners

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ASSEMBLY USE

·??????Size: 2,000 - 100,000 square feet

ECONOMY: Outbuildings, Mostly Unfinished

·??????Farm Arenas

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Armouries, Country Clubs, Cinemas

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VERY GOOD: Fully Finished Build-out, Upgraded Mechanical

·??????Auditoriums, Fraternal, Visitor Centres, Senior Centres

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EXCELLENT: High-cost Build-out, Best finishes. High Partition Density, Best Mechanical

·??????Religious (includes Churches, Sunday Schools, Sanctuaries, Chapels, Fellowship Halls, Foyers, Narthexes, Educational Wings)

·??????Live Stage, Convention Centres, Museums

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RECREATIONAL USE

·??????Size: 2,000 - 100,000 square feet

AVERAGE: Some Finished Floors, Interior Build-out, Low-Cost Mechanical

·??????Tennis Clubs, Pavilions, Arcades, Rod & Gun Clubs, Rifle Ranges

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Health Clubs (Spas), Handball/Racquetball Clubs

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VERY GOOD: Fully Finished Build-out, Upgraded Mechanical

·??????Bowling, Fitness, Community Centres, Ice Skating Rinks, Roller Skating Rinks,

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EXCELLENT: High-cost Build-out, Best finishes. High Partition Density, Best Mechanical

·??????Casinos

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EDUCATIONAL USE

·??????Size: 500 - 250,000 square feet

AVERAGE: Some Finished Floors, Interior Build out, Low-Cost Mechanical

·??????Manual Arts, Shop, Field-houses

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Shower, Rest Rooms, Maintenance, Storage, Physical Education, Gymnasiums, General Classrooms, Day Care Centres, Technical Trade Schools

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VERY GOOD: Fully Finished Build-out, Upgraded Mechanical

·??????Schools (includes High, Middle, Junior High, Elementary, Vocation)

·??????Classrooms (includes Special Education, Relocatable, Lecture, Laboratory)

·??????Miscellaneous (includes Media Centres, Libraries, Fine Arts, Book Stores, Natatoriums, Physical Education, Gymnasiums, Theater Arts, Science, Lecture Hall, Arts & Crafts)

·??????Commercial-Institutional Greenhouses

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EXCELLENT: High-cost Build-out, Best finishes. High Partition Density, Best Mechanical

·??????Universities (includes Colleges, Academic [College] Libraries, Commons, Multipurpose, Administration, Offices, Relocatable Offices)

RESIDENTIAL USE

·??????Economical Size: 25 - 3185 square feet

·??????Average, Size: 4,000 - 100,000 square feet

·??????Good, Very Good, & Excellent Size: 1,500 - 100,000 square feet

ECONOMY: Outbuildings, Mostly Unfinished

·??????Specialty (includes Prefab Cottages, Yurts, Low Cost, A-Frame Cabins, Dome Houses, Storm Shelters)?

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AVERAGE: Some Finished Floors, Interior Build-out, Low-Cost Mechanical

·??????Guest Cottages, Farm Labour Housing, Transient Labour Cabins

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GOOD: Greater Partition Density, Better Lighting & Plumbing, Increased Personnel Density

·??????Motels (includes Extended Stay, Motel Guest Rooms, Bed and Breakfast Inns)

·??????Rooming Houses, Cabins

·??????Multiples (includes Extended Stay, Office – Apartments, Elderly Assisted Living, Retirement Community Complexes)

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VERY GOOD: Fully Finished Build-out, Upgraded Mechanical

·??????Rectories, Fraternity Housing, Lodges, Dormitories, Group Care Homes, Homes for the Elderly,

·??????Apartments (includes High Rise Row (Town) Houses)

·??????Residences (includes Single Family, Guest Houses, Bath Houses, Log Homes, Earth-Sheltered, Rammed Earth, Baled-Straw, Tropical)

·??????Historical Residences, Town Houses (includes Row, Senior Citizen, Urban Row)

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EXCELLENT: High-cost Build-out, Best finishes. High Partition Density, Best Mechanical

·??????City Clubs, Hotels, Luxury Apartments (High Rise), Convalescent Hospitals, High Value Residences

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Need an independent Compliance & Regulatory Ruling or Review email us at [email protected] with the following information.

·??????Your name

·??????Your email address

·??????Your phone number

·??????A synopsis of the situation